Understanding Development Funding
Accessing development finance is key to bringing housing projects to life - especially for developers, local authorities and housing associations with ambitious delivery plans. But navigating the Homes England-backed options available, from infrastructure loans to SME development support, can be complex. Thornton & Lowe’s housing specialists help you structure viable applications and manage funding from start to finish.
Homes England supports housebuilding through the Home Building Fund, offering tailored development loans and infrastructure finance. These funds are designed to:
- Speed up the delivery of homes, especially on complex or stalled sites
- Support SME developers and new entrants to the market
- Encourage modern methods of construction (MMC), sustainability, and innovation
Let’s break down what’s available:
Funding Type | Purpose | Loan Amount | Term | Who It's For |
Home Building Fund – development finance | To support the delivery of new homes in great communities and encourage innovation | From £250,000 | Up to 5 years | SMEs, developers and housebuilders |
Infrastructure Loans | Fund infrastructure and land prep to unlock housing delivery | Up to £250 million | Up to 20 years | Developers, master developers, landowners |
Both funding routes are part of the Home Building Fund, delivered by Homes England. Infrastructure loans are ideal for large sites where upfront investment in roads, schools, or utilities is needed to enable delivery. Development finance is more commonly used to fund the build itself.
Home Building Fund: What to Expect
Development finance through the Home Building Fund is flexible, commercial and tailored. It’s open to any financially viable project with 5 or more units (new build or refurb), where progress would stall without the funding. Your business must be a UK-registered entity or LLP.
The fund supports schemes that are innovative, sustainable, or led by smaller developers. This includes:
- Custom and self-build
- Offsite construction
- Community-led housing
- SME partnerships delivering larger sites
You’ll need a clear route to planning permission, control of the land, and a build programme. The loan is secured against property assets and interest is charged at a transparent, commercial rate. Sales proceeds can be recycled into future phases.
As of 2025, a new SME Accelerator Loan has been launched. It gives smaller builders a way to fund a current scheme while also acquiring land for a future one, therefore helping build pipeline and sustainability.
Homes England will work with you to agree eligible costs, and we support clients to ensure submissions are well-structured and commercially sound.
Infrastructure Loans: Unlocking Large Sites
Infrastructure loans help deliver enabling works that make housing schemes possible. This includes land remediation, road and utility infrastructure, education and health facilities, and placemaking. Projects must:
- Lead directly to housing delivery
- Be financially viable
- Have a clear path to planning and site control
Terms are up to 20 years, and the loans are usually secured against land or future development value. Sales of homes or serviced plots can be used to repay the loan. The fund can also support new development platforms and strategic land partnerships.
Homes England prioritises applications that align with government goals, including net zero, SME support, innovation and brownfield development.
Our Support: Thornton & Lowe’s Development Funding Expertise
Our housing consultancy division are experienced in social housing and accessing government funding. We work across the UK with housing associations, developers, local authorities and community-led projects and can support funding bids, housing strategy and delivery.
We can provide:
- Feasibility and financial modelling for Homes England bids
- End-to-end support with development finance and infrastructure loan applications
- Advice on MMC, innovation, SME strategy and partnership structuring
- Support with engaging local authorities and meeting policy priorities
- Help for new entrants, joint ventures, and community-led projects to access funding
We’ve worked with:
Bournville Village Trust, Care HA, Gentoo, Incommunities, Longhurst Group, Prestwich North West Housing Association, Rochdale Boroughwide Housing, South Lakes Housing and Thenue Housing - supporting everything from strategic guidance and delivery models to commercial benchmarking, procurement support and bid writing.
We understand the complexity and pressures of housing delivery, and how to put forward a compelling, fundable case that aligns with national goals.
Let’s Talk
Whether you’re preparing your first development funding application or scaling up with Homes England support, we’re here to help. From one-off advice to full-service consultancy, our team brings practical insight and sector knowledge.
Speak to us today or explore our social housing consultancy services to see how we can support your next project.